NIFRA's Bond Will be Listed in London Stock Exchange? NEPSE Demands Clarification

Wed, Mar 17, 2021 1:41 PM on Stock Market, Latest,

Amidst the spread of sensitive news about Nepal Infrastructure Bank Limited (NIFRA) that can potentially affect market sentiment, the exchange has demanded clarification from the company regarding a number of issues.

The recent IPO issue of the company was a huge success. Nepal Infrastructure Bank Limited had issued 8,00,00,000 units worth Rs 8 Arba as Initial Public Offering to the general public from Magh 2-6, 2077. Out of the offered 8,00,00,000 units; 0.20% of the total offered shares to the general public i.e. 1,60,000 units were set aside for the employees of the company and 5% for mutual funds. The remaining 7,58,40,000 units were for the general public. The issue had received applications from 14,75,008 valid applicants who had applied for a total of 16,72,10,000 units. The issue was oversubscribed more than 2.21 times.

It was reported by a few news portals that the company was now preparing to issue a bond worth 30 million US dollars and that the bond was to be listed in the London Stock Exchange. It was also reported that the company was all set to issue the bond in this fiscal year itself with an annual return of 8.5%.

Furthermore, the company has been subject to numerous news and speculation from investors and news portals, some authentic and some shady. For instance, it is also widely circulated in the investors' community that the company is planning to distribute a 10% dividend from its profit.

Referring to all these concerns, the exchange has demanded an official clarification from NIFRA within 3 working days after the publishing of NEPSE's official request.

Message to readers: Any news not unveiled by the official sources themselves should be taken with a grain of salt. Only choose authentic sources for information.